Mr. Schilling (for
himself and Mr. Loebsack) introduced
the following bill; which was referred to the
Committee on Armed
Services

A BILL

To provide strategic workload to Army arsenals in their
function as a critical component of the organic defense industrial
base.

1.

Short title

This Act may be cited as the
Army Arsenal Strategic Workload
Enhancement Act of 2012.

2.

Department of
Defense use of arsenals

(a)

In
general

Chapter 143 of title 10, United States Code, is amended
by adding at the end the following new section:

2425.

Department of
Defense use of arsenals

(a)

In
general

The Secretary of Defense shall develop and promulgate
measurable and enforceable guidelines for the Department of Defense, defense
agencies, and the military services to have supplies, components, end items,
parts, assemblies, and sub-assemblies made in factories or arsenals owned by
the United States, to the extent those factories or arsenals can make those
supplies, components, end items, parts, assemblies, and sub-assemblies on an
economical basis while preserving the ability to provide an effective and
timely response to mobilizations, national defense contingency situations, and
other emergency requirements.

(b)

Determination of
economical basis

For purposes of determining whether supplies,
components, end items, parts, assemblies, and sub-assemblies can be made on an
economical basis under subsection (a), the Secretary of Defense
shall analyze the direct costs associated with the manufacture of such
supplies, components, end items, parts, assemblies, and sub-assemblies. If an
analysis is not performed, the Secretary of Defense or the relevant defense
agency or military service shall promptly report to the congressional defense
committees the justification for not performing an
analysis.

.

(b)

Clerical
amendment

The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

2425. Department of Defense use of
arsenals.

.

3.

Assignment of
workload at Army factories and arsenals

(a)

In
general

Section 4532 of title 10, United States Code, is amended
to read as follows:

4532.

Assignment of
workload at Army factories and arsenals

(a)

Assignment of
workload

(1)

The Secretary of the
Army shall assign Government-owned and Government-operated Department of the
Army factories and arsenals sufficient workload to ensure cost efficiency and
technical competence in peacetime, while preserving the ability to provide an
effective and timely response to mobilizations, national defense contingency
situations, and other emergency requirements.

(2)

At a minimum, workload may be derived
from manufacturing of supplies, components, parts, systems, subsystems, and
foreign military sales.

(3)

The Secretary of the Army shall
develop and promulgate guidelines to make the arsenals available to the
Department of Defense, defense agencies, and military services for procurement
of supplies, components, parts, systems, and subsystems.

(b)

Waiver
authority

(1)

The Secretary of the
Army may waive the requirement under subsection (a)(1) if such a waiver is
necessary for the national defense.

(2)

A waiver under paragraph (1) shall
not take effect until 30 days after the Secretary submits to the congressional
defense committees a notification of the determination, together with the
justification for the determination.

(3)

The authority to grant a waiver under
paragraph (1) may not be delegated.

(c)

Annual arsenal
report

In 2013 and each year thereafter, not later than 60 days
after the date on which the budget of the President for a fiscal year is
submitted to Congress, the Secretary of Defense shall submit to Congress a
report for the Army identifying, for the relevant fiscal year, each of the
following:

(1)

The core arsenal
manufacturing capability.

(2)

The workload
required to cost-effectively support the arsenals and the manufacturing
capability inherent in these installations.

(3)

The Secretary of
the Army’s performance in maintaining the Department of the Army’s factories
and arsenals with sufficient workload to ensure affordability and technical
competence in peacetime.

(4)

The capital
investments required to be made in order to ensure compliance and operational
capacity.

(d)

Comptroller
general review

The Comptroller General shall review each report
required under subsection (c) for completeness and compliance and provide
findings and recommendations to the congressional defense committees not later
than 60 days after the report is submitted to
Congress.

.

(b)

Clerical
amendment

The table of sections at the beginning of chapter 433
of title 10, United States Code, is amended by striking the item relating to
section 4532 and inserting the following new item:

4532. Assignment of workload at Army factories and
arsenals.

.

(c)

Initial workload
plan report

The first report required under subsection (c) of
section 4532 of title 10, United States Code, as amended by subsection (a),
shall be submitted not later than 180 days after the date of the enactment of
this Act.